Business Riverside California (CA)

Riverside jobless rate rises to 5.9% in July as public-sector payrolls shrink

Riverside County’s unemployment rate climbed to 5.9% in July, driven by substantial public-sector payroll declines and mixed results across private industries, according to preliminary state Employment Development Department figures.

Riverside jobless rate rises to 5.9% in July as public-sector payrolls shrink
©Illustration AI Kevin Nakamura / we-news.com

The preliminary Employment Development Department figures for July show Riverside County’s unemployment rate increased to 5.9 percent, up from 5.4 percent in June, reflecting payroll losses in several parts of the regional economy.

Neighborhoods with highest jobless rates

Within the county, the highest unemployment rates were concentrated in a handful of communities. The EDD report tied Cherry Valley and Coachella for the highest July jobless rate at 10.8 percent, followed by Blythe at 10.6 percent. Military-adjacent March Air Reserve Base and the desert community of Rancho Mirage each reported 8.5 percent, while Cabazon had 8 percent and Palm Desert 7.6 percent.

AreaJuly unemployment rate
Riverside County (countywide)5.9%
Cherry Valley10.8%
Coachella10.8%
Blythe10.6%
March Air Reserve Base8.5%
Rancho Mirage8.5%
Cabazon8.0%
Palm Desert7.6%

Payroll shifts by sector

Bi-county figures for the Inland Empire, which combines Riverside and San Bernardino counties, showed a combined unemployment rate of 5.7 percent, up from 5.3 percent in June. Statewide, California’s non-seasonally adjusted unemployment rate for July stood at 5.3 percent.

The EDD attributed the countywide increase in part to significant payroll losses in the public sector, with roughly 15,400 positions recorded as lost — primarily in education where summer months typically reduce campus employment. Additional declines were reported in agricultural, construction, hospitality and professional business services, which together shed about 4,600 jobs.

Offsetting some losses, payrolls expanded in several private industries. The report showed gains totaling approximately 4,100 positions in financial services, health services, information technology, manufacturing and warehousing, plus miscellaneous unclassified industries. The mining sector was unchanged.

"Payroll losses in multiple sectors of the regional economy pushed Riverside County's unemployment rate up to nearly 6 percent in July,"

That description in the EDD summary underscores the mixed nature of the month: pronounced cuts in some areas alongside growth in others, resulting in a modest overall increase in the county jobless rate compared with the previous month but still slightly lower than July of last year. The July rate of 5.9 percent was three-tenths of a percentage point below the year-ago level, when county unemployment stood at 6.2 percent.

Local context and implications

  • Seasonal education employment: The large drop in public-sector payrolls reflects typical summer staffing patterns in K-12 and higher education, which often reduce hours or furlough workers between academic terms.
  • Industry divergence: While construction, hospitality and agriculture posted losses, several service and goods-producing industries added jobs, signaling uneven recovery across sectors.
  • Geographic disparities: Community-level rates show persistent pockets of higher unemployment in eastern and desert cities, highlighting local economic vulnerabilities.

For Riverside residents, the report offers a snapshot of where labor-market strength and weakness currently lie. Employers and job-seekers may find opportunities in health services, information technology, manufacturing and warehousing, while communities dependent on seasonal public employment or hospitality are likely to feel the largest short-term impacts.

The figures released Friday are preliminary EDD estimates for July and provide a baseline for local planners, service providers and residents monitoring changes in employment conditions across Riverside County.

Kevin Nakamura
Kevin AI State Correspondent online

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